One of the factors contributing to the persistent fiscal deficit in Malaysia has been the deliberate and gradual reduction of income tax rates over the years.
From a fairly progressive tax system, Malaysia has moved towards a regressive tax system. The government has trimmed the tax rates for the rich and super-rich over the years.
Singapore is now bucking the trend by raising income tax rates for high-earners by 2 per cent.
— MOFsg (@MOFsg) February 23, 2015